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Feb 29, 2020

Constellation Brands Q4 2020 Earnings Report

Reported strong Q4 results driven by beer business and premiumization strategy for wine & spirits.

Key Takeaways

Constellation Brands reported a 6% increase in net sales for Q4 2020, reaching $1.903 billion. The beer business delivered strong growth, while the wine & spirits segment saw premiumization gains. EPS was $2.04, and comparable EPS was $2.06. The company is navigating the challenging operating environment presented by COVID-19.

Generated record operating and free cash flow for fiscal 2020.

Beer Business posted import beer depletion growth of 11.4% and overall depletion growth of 10.8% driven by the Modelo and Corona Brand Families.

Depletion growth accelerated to more than 4% for the Wine & Spirits Power Brand portfolio.

Operating margin increased 120 basis points to 28.9% for Wine and Spirits, driven by mix benefits and lower marketing and SG&A spend.

Total Revenue
$1.9B
Previous year: $1.8B
+5.9%
EPS
$2.06
Previous year: $1.84
+12.0%
Beer Shipments
65.3M
Wine & Spirits Shipments
14M

Constellation Brands

Constellation Brands

Constellation Brands Revenue by Segment

Forward Guidance

Fiscal 2021 EPS guidance is unavailable at this time due to potential impacts on the business from COVID-19. However, pre-COVID-19 business target assumptions for fiscal 2021 are available.